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Digital Library

of the European Council for Modelling and Simulation

 

Title:

Behavioral Microsimulation Of A Dual Income Tax Reform:

A Mixed-Logit Approach

Authors:

Gerhard Wagenhals

Published in:

 

(2010).ECMS 2010 Proceedings edited by A Bargiela S A Ali D Crowley E J H Kerckhoffs. European Council for Modeling and Simulation. doi:10.7148/2010 

 

ISBN: 978-0-9564944-1-2

Doi: 10.7148/2010

 

24th European Conference on Modelling and Simulation,

Simulation Meets Global Challenges

Kuala Lumpur, June 1-4 2010

 

Citation format:

Wagenhals, G. (2010). Behavioral Microsimulation Of A Dual Income Tax Reform: A Mixed-Logit Approach. ECMS 2010 Proceedings edited by A Bargiela S A Ali D Crowley E J H Kerckhoffs (pp. 135-142). European Council for Modeling and Simulation. doi:10.7148/2010-0135-0142

DOI:

http://dx.doi.org/10.7148/2010-0135-0142

Abstract:

Simulation studies of the economic impact of dual in- come taxes are almost always based on general equilib- rium models. They assume one representative household. Their results are sensitive to one behavioral parameter, the labor supply elasticity, which is assumed to be given a priori — instead of being estimated.

This paper shows how to model the labor supply in- centive effects of a Dual Income Tax reform based on a sample of thousands of households representative for the population in Germany and using flexible mixed logit simulation estimators.

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